Update on My Acct 301 Pretest

Update: 8/26/2013

The test was last revised January 2013. For more information, check out:
http://www.sfsu.edu/~testing/301_Pretest_study_guide_updated_Spring_2013.pdf

Skip my rant and move to the comments at the end of this post, that’s where the meat is.

Sorry for this late update, I was changing webhosts and so decided not to make another post until the DNS had propogated (don’t worry if you don’t know what that means).

I got 17 in my Acctg 301 pretest out of 30. I first couldn’t believe it coz I didn’t guess a single thing on the test, when I was confused it was only between 2 choices and it happend in 4-5 questions. 21 and above is pass so I guess I will be taking this test again. No worries as I still have to complete 2 pre-requisites before I can take my first upper division accounting class.

Since friday, this thing has been making me crazy and at the same time I feel like something went terribly wrong. I was done within one hour and knew I would get more than 21 without any problems but I was soooooo wrong.

Let me tell you little about the pretest. The last time it was revised was in 2004. It had a question on Dividends. I have no idea how one can relate adjusting entries and dividends together. On the pretest website they explicitly say to review the 3rd chapter of any Intermediate Financial Accounting book and you will be good to go. Please tell what book out there talks about Dividends in the 3rd Chapter?

From SFSU Acct 301 Pre-test information page:

“Students may prepare for the pretest by studying any introductory financial accounting textbook which includes material on the double entry bookkeeping system (i.e., debits and credits). Most introductory financial accounting textbooks cover this material. A more efficient method of preparation is studying the review chapter, usually chapter three, of any intermediate financial accounting textbook.”

That’s not all, this Dividend question is a trick question. The answer is NONE or None of the above and I got it wrong. There was this other question out of the blue that had to do with some principle, answer to that was Recognition and I picked Matching because 3rd chapter in any accounting book deals with only matching concept.

183 Comments

  1. jeanelle January 23, 2007 at 7:19 am

    maaan. that sucks. I took the test too and i thought it was a bit difficult. have you gotten good grades in accounting courses? Because they shouldn’t make the test unattainable. ugh.

    Reply
  2. jeanelle January 23, 2007 at 12:19 am

    maaan. that sucks. I took the test too and i thought it was a bit difficult. have you gotten good grades in accounting courses? Because they shouldn’t make the test unattainable. ugh.

    Reply
  3. Zahid Lilani January 23, 2007 at 10:02 pm

    Yeah the reason i went into accounting was that i discovered i am good at it and i did pretty well in it and this pretest makes me feel like i should just put my AA accounting degree in trash…

    Reply
    1. Alex Chang August 18, 2012 at 2:16 am

      I thought I was pretty decent at accounting too and also possess an AA degree in Accounting. But your right, this test was brutal and I actually got an 18 on my frist try :/

      Reply
  4. Zahid Lilani - Site Author January 23, 2007 at 3:02 pm

    Yeah the reason i went into accounting was that i discovered i am good at it and i did pretty well in it and this pretest makes me feel like i should just put my AA accounting degree in trash…

    Reply
  5. Fellow SFSU Student January 16, 2008 at 8:52 pm

    Did you ever pass the Acct 301 Pre-test? If so, do you have any advise as to what to concentrate on? I’ve taken it a couple of times and haven’t passed. It’s rather frustrating. Any help will be appreciated.

    Reply
    1. GB August 10, 2010 at 4:15 am

      I have taken the test last Saturday and I got 24/30. The only reason why I passed was because I studied pretty hard. The test questions were really tricky and I actually thought I wasn’t going to pass it for the first time. My recommendation is; study the Financial Accounting Book of chapters 1,2,3,4,6, and 7.

      Reply
  6. Fellow SFSU Student January 16, 2008 at 12:52 pm

    Did you ever pass the Acct 301 Pre-test? If so, do you have any advise as to what to concentrate on? I’ve taken it a couple of times and haven’t passed. It’s rather frustrating. Any help will be appreciated.

    Reply
  7. Zahid Lilani January 16, 2008 at 9:46 pm

    Yeah I did pass it eventually. I suggest you concentrate on accrual accounting and first 3 chapters of any accounting book. Hope it helped… and best of luck!

    Reply
  8. Zahid Lilani - Site Author January 16, 2008 at 1:46 pm

    Yeah I did pass it eventually. I suggest you concentrate on accrual accounting and first 3 chapters of any accounting book. Hope it helped… and best of luck!

    Reply
  9. Accountants Guide UK January 22, 2008 at 1:30 pm

    Feels bad to hear from some who works so hard and then fails the exam. Well; , accountancy is the subject you smply can avoid in collegs. You just can play the guess game here

    Reply
  10. Accountants Guide UK January 22, 2008 at 5:30 am

    Feels bad to hear from some who works so hard and then fails the exam. Well; , accountancy is the subject you smply can avoid in collegs. You just can play the guess game here

    Reply
  11. emilia August 17, 2008 at 5:30 pm

    I took the test yesterday (for the second times). Zahid Lilani was right, the test covered a lot from the first three chapters from any financial accounting textbooks. I got the recognition principle wronged, I thought it was matching principle . Mann
    There’s question about ledger, trial, and journal. Several Unearned Revenue problems, and interest expense problems.

    Reply
  12. emilia August 17, 2008 at 9:30 am

    I took the test yesterday (for the second times). Zahid Lilani was right, the test covered a lot from the first three chapters from any financial accounting textbooks. I got the recognition principle wronged, I thought it was matching principle . Mann
    There’s question about ledger, trial, and journal. Several Unearned Revenue problems, and interest expense problems.

    Reply
  13. bitesizedmango January 14, 2009 at 7:39 am

    I just got my test score right now and i was so mad. i got a 20 out of 30. just one point away from passing! Do any of you know if its still going to be the same test when you retake it?

    Reply
  14. bitesizedmango January 13, 2009 at 11:39 pm

    I just got my test score right now and i was so mad. i got a 20 out of 30. just one point away from passing! Do any of you know if its still going to be the same test when you retake it?

    Reply
  15. Zahid Lilani January 15, 2009 at 8:23 am

    Yes it is usually the same question book everytime….

    Reply
  16. Zahid Lilani - Site Author January 15, 2009 at 12:23 am

    Yes it is usually the same question book everytime….

    Reply
  17. testing January 19, 2009 at 6:46 am

    I just got a 13…is there a way to check what you got right and what you got wrong?

    Reply
  18. testing January 18, 2009 at 10:46 pm

    I just got a 13…is there a way to check what you got right and what you got wrong?

    Reply
  19. Zahid Lilani January 21, 2009 at 3:40 am

    There is no way to check what you got wrong or right… they don’t give out solutions!

    Reply
  20. Zahid Lilani - Site Author January 20, 2009 at 7:40 pm

    There is no way to check what you got wrong or right… they don’t give out solutions!

    Reply
  21. Lisa March 19, 2009 at 7:47 pm

    There was one question there… Where facts and figures are first recored..

    Is it Account or Ledger?

    Reply
  22. Lisa March 19, 2009 at 11:47 am

    There was one question there… Where facts and figures are first recored..

    Is it Account or Ledger?

    Reply
  23. Zahid Lilani March 20, 2009 at 1:14 am

    I do remember this question… I know that Ledger is the last… the first entry is usually in the Journal… was there an option for journal there? If not, then it is definitely Account. Journal entry includes posting it to a certain account like A/R etc so it is Account.

    Reply
  24. Zahid Lilani - Site Author March 19, 2009 at 5:14 pm

    I do remember this question… I know that Ledger is the last… the first entry is usually in the Journal… was there an option for journal there? If not, then it is definitely Account. Journal entry includes posting it to a certain account like A/R etc so it is Account.

    Reply
  25. Lisa March 23, 2009 at 4:00 pm

    Do you remember this one question about the Tickets? They were purchased at a certain date, paid after a few days but weren’t used after a few days later. The question was “How are you going to post it?”

    Reply
  26. Lisa March 23, 2009 at 8:00 am

    Do you remember this one question about the Tickets? They were purchased at a certain date, paid after a few days but weren’t used after a few days later. The question was “How are you going to post it?”

    Reply
  27. Zahid Lilani March 23, 2009 at 5:19 pm

    Are you talking about the one where airline tickets are purchased but not used? It is unearned revenue for the airline company and it is reported as a liability, I vaguely remember that question.

    Reply
  28. Zahid Lilani - Site Author March 23, 2009 at 9:19 am

    Are you talking about the one where airline tickets are purchased but not used? It is unearned revenue for the airline company and it is reported as a liability, I vaguely remember that question.

    Reply
  29. Lisa March 23, 2009 at 8:59 pm

    I think you’re right. Thanks

    Reply
  30. Lisa March 23, 2009 at 12:59 pm

    I think you’re right. Thanks

    Reply
  31. guest April 15, 2009 at 5:39 am

    im taking the test this saturday, any tips? thanks in advance

    Reply
  32. guest April 14, 2009 at 9:39 pm

    im taking the test this saturday, any tips? thanks in advance

    Reply
  33. Zahid Lilani April 15, 2009 at 6:20 am

    I know someone else who is taking the test this Saturday too. I don’t have any test related tips beside recommending you read all the comments posted above and register for the next test date after april 18th (just incase)

    Reply
  34. Zahid Lilani - Site Author April 14, 2009 at 10:20 pm

    I know someone else who is taking the test this Saturday too. I don’t have any test related tips beside recommending you read all the comments posted above and register for the next test date after april 18th (just incase)

    Reply
  35. lani April 19, 2009 at 9:48 am

    are you sure that dividend question was none of the above? wasn’t it “never”? i think the question had to do with dividends being an expense. and dividends can’t be expenses right? maybe i’m wrong?

    Reply
  36. lani April 19, 2009 at 1:48 am

    are you sure that dividend question was none of the above? wasn’t it “never”? i think the question had to do with dividends being an expense. and dividends can’t be expenses right? maybe i’m wrong?

    Reply
  37. guest April 22, 2009 at 12:38 am

    Man, I am not happy. I got a 19/30 and I don’t know which ones I got wrong.

    I remember something like
    If you debit an increase an asset, it could also mean.. increase in liabilities, decrease in expenses, don’t really remember the answers, but its something like that.

    Dividend question

    Airline question, where tickets were bought in December (or something) and at the end of the period, they were some that were unused/or will be used in January. Lets say.. total of all tickets was $800. At the end of the period they would $200 would be unused or will be used in January. How would you journal this?

    I’m trying to remember all the questions so I know what I did right and what I did wrong in the test.

    Reply
  38. guest April 21, 2009 at 4:38 pm

    Man, I am not happy. I got a 19/30 and I don’t know which ones I got wrong.

    I remember something like
    If you debit an increase an asset, it could also mean.. increase in liabilities, decrease in expenses, don’t really remember the answers, but its something like that.

    Dividend question

    Airline question, where tickets were bought in December (or something) and at the end of the period, they were some that were unused/or will be used in January. Lets say.. total of all tickets was $800. At the end of the period they would $200 would be unused or will be used in January. How would you journal this?

    I’m trying to remember all the questions so I know what I did right and what I did wrong in the test.

    Reply
  39. Angel April 27, 2009 at 4:33 pm

    Does anyone remember if the sample questions provided on the testing site were on the actual exam? I appreciate all the discussion about the pretest, as I’ve now signed up for May 8th AND May 16th. I’m registered for ACCT302 in the summer and don’t know if I’ll have any other test dates to try it before I’m supposed to take the class… eek. I’ll post whatever questions I can remember once I take it. Does anyone know if we need an ACCT301 waiver signed after we pass and where you go to get it signed? Good luck passing guys, sounds like we’ll need it.

    Reply
  40. Angel April 27, 2009 at 8:33 am

    Does anyone remember if the sample questions provided on the testing site were on the actual exam? I appreciate all the discussion about the pretest, as I’ve now signed up for May 8th AND May 16th. I’m registered for ACCT302 in the summer and don’t know if I’ll have any other test dates to try it before I’m supposed to take the class… eek. I’ll post whatever questions I can remember once I take it. Does anyone know if we need an ACCT301 waiver signed after we pass and where you go to get it signed? Good luck passing guys, sounds like we’ll need it.

    Reply
  41. Zahid Lilani April 27, 2009 at 6:32 pm

    @Angel: You cannot register for ACCT 301 if you haven’t passed the pretest. ACCT 301 is the prerequisite for ACCT 302 so there is no such thing as a waiver.

    In order to take ACCT 301, you have to pass the pretest. This test is not a test to waive the ACCT 301 course.

    Sample test questions are not in the actual exam. Best of luck!

    Reply
  42. Zahid Lilani - Site Author April 27, 2009 at 10:32 am

    @Angel: You cannot register for ACCT 301 if you haven’t passed the pretest. ACCT 301 is the prerequisite for ACCT 302 so there is no such thing as a waiver.

    In order to take ACCT 301, you have to pass the pretest. This test is not a test to waive the ACCT 301 course.

    Sample test questions are not in the actual exam. Best of luck!

    Reply
  43. Zahid Lilani April 27, 2009 at 6:33 pm

    @Lani: the answer is either none or never, dividends are never expenses.

    Reply
  44. Zahid Lilani - Site Author April 27, 2009 at 10:33 am

    @Lani: the answer is either none or never, dividends are never expenses.

    Reply
  45. Angel April 27, 2009 at 11:44 pm

    Zahid: Thanks for the reply, but I probably should have been more specific. I am already registered for the summer offering of ACCT301 (not ACCT302 as I mistyped above), even though I have not yet passed the pretest. I assume we can register, but that we may not be able to stay in the class if we don’t pass in time. Also, I read at ttp://online.sfsu.edu/~profchoo/case1.htm that “After you have passed the pretest, then ask your adviser to sign a waiver form for ACCT102. This waiver form must accompany your graduation application form.” This was the waiver I was referring to.
    To everyone else, I made another typo in my last post… For anyone who may be taking the exams, the dates are May 9th (not the 8th) at 10am and TBA on May 16th.
    Can anyone tell me how soon you find out if you passed the pretest?

    Reply
  46. Angel April 27, 2009 at 3:44 pm

    Zahid: Thanks for the reply, but I probably should have been more specific. I am already registered for the summer offering of ACCT301 (not ACCT302 as I mistyped above), even though I have not yet passed the pretest. I assume we can register, but that we may not be able to stay in the class if we don’t pass in time. Also, I read at ttp://online.sfsu.edu/~profchoo/case1.htm that “After you have passed the pretest, then ask your adviser to sign a waiver form for ACCT102. This waiver form must accompany your graduation application form.” This was the waiver I was referring to.
    To everyone else, I made another typo in my last post… For anyone who may be taking the exams, the dates are May 9th (not the 8th) at 10am and TBA on May 16th.
    Can anyone tell me how soon you find out if you passed the pretest?

    Reply
  47. guest April 28, 2009 at 1:56 am

    3-4 days

    Reply
  48. guest April 27, 2009 at 5:56 pm

    3-4 days

    Reply
  49. Zahid Lilani April 28, 2009 at 2:14 am

    @angel: It should be available by Tuesday night, if you are taking it on a Saturday.

    http://online.sfsu.edu/~profchoo/case1.htm was last updated on Tuesday, December 11, 2001. The information there is pretty outdated because I don’t think you now have the option of taking the 1 unit course ACCT 102. In fact, that course doesn’t exist anymore.

    Just pass the pretest get over with it, don’t worry about getting any kind of waiver coz you don’t need one.

    Reply
  50. Zahid Lilani - Site Author April 27, 2009 at 6:14 pm

    @angel: It should be available by Tuesday night, if you are taking it on a Saturday.

    http://online.sfsu.edu/~profchoo/case1.htm was last updated on Tuesday, December 11, 2001. The information there is pretty outdated because I don’t think you now have the option of taking the 1 unit course ACCT 102. In fact, that course doesn’t exist anymore.

    Just pass the pretest get over with it, don’t worry about getting any kind of waiver coz you don’t need one.

    Reply
  51. Angel April 28, 2009 at 3:13 am

    Zahid, Thanks a bunch. I see what you mean now. Thanks to the guest above as well. More to follow.

    Reply
  52. Angel April 27, 2009 at 7:13 pm

    Zahid, Thanks a bunch. I see what you mean now. Thanks to the guest above as well. More to follow.

    Reply
  53. guest May 2, 2009 at 4:26 pm

    Hey Zahid can you answer a few questions I put up earler?
    If you debit an increase an asset, it could also mean.. increase in liabilities, decrease in expenses, don’t really remember the answers, but its something like that.

    Dividend question

    Airline question, where tickets were bought in December (or something) and at the end of the period, they were some that were unused/or will be used in January. Lets say.. total of all tickets was $800. At the end of the period they would $200 would be unused or will be used in January. How would you journal this?

    I’m trying to remember all the questions so I know what I did right and what I did wrong in the test.

    Reply
  54. guest May 2, 2009 at 8:26 am

    Hey Zahid can you answer a few questions I put up earler?
    If you debit an increase an asset, it could also mean.. increase in liabilities, decrease in expenses, don’t really remember the answers, but its something like that.

    Dividend question

    Airline question, where tickets were bought in December (or something) and at the end of the period, they were some that were unused/or will be used in January. Lets say.. total of all tickets was $800. At the end of the period they would $200 would be unused or will be used in January. How would you journal this?

    I’m trying to remember all the questions so I know what I did right and what I did wrong in the test.

    Reply
  55. Angel May 9, 2009 at 8:08 pm

    I just took the pretest this morning. I'm not sure exactly which question your first one was, but there was one that asked what the affect of a debit was on accounts. I'm not certain, but I'm pretty sure the answer was: debits increase assets and expenses and decrease liabilities and revenue/owner's equity.
    The second question you asked about should have debited Unearned service revenue for what was used up by the end of Dec (800-200=600, I'm using your numbers) and credited service revenue for 600. The remaining debit balance in the unearned revenue should be 200 that is unused as of Jan 1.

    Reply
  56. Angel May 9, 2009 at 8:08 pm

    I just took the pretest this morning. I'm not sure exactly which question your first one was, but there was one that asked what the affect of a debit was on accounts. I'm not certain, but I'm pretty sure the answer was: debits increase assets and expenses and decrease liabilities and revenue/owner's equity.
    The second question you asked about should have debited Unearned service revenue for what was used up by the end of Dec (800-200=600, I'm using your numbers) and credited service revenue for 600. The remaining debit balance in the unearned revenue should be 200 that is unused as of Jan 1.

    Reply
  57. Angel May 9, 2009 at 8:27 pm

    Other topics on the exam:
    -FASB: what it is (1?)
    -GAAP: what it is(1?)
    -***Adjusting Entries (5+?): what accounts are frequently used to record AE (e.g. assets, liability, equity, etc.) and the effects on those accounts (inc. or dec.); how to record adjusting entries based on unearned revenue, interest, depreciation, and similar scenarios
    -The order you prepare financial statements: income stmt., stmt. of owner's equity, balance sheet (1?)… I'm starting to blank on the rest, but I'll post back as I think of more. My advice is to use the entire time and READ EACH QUESTION SOOO CAREFULLY! If you've had a class in accounting basics, the test isn't so very hard, but I felt it was very tricky. Good luck everyone.

    Reply
  58. Angel May 9, 2009 at 8:27 pm

    Other topics on the exam:
    -FASB: what it is (1?)
    -GAAP: what it is(1?)
    -***Adjusting Entries (5+?): what accounts are frequently used to record AE (e.g. assets, liability, equity, etc.) and the effects on those accounts (inc. or dec.); how to record adjusting entries based on unearned revenue, interest, depreciation, and similar scenarios
    -The order you prepare financial statements: income stmt., stmt. of owner's equity, balance sheet (1?)… I'm starting to blank on the rest, but I'll post back as I think of more. My advice is to use the entire time and READ EACH QUESTION SOOO CAREFULLY! If you've had a class in accounting basics, the test isn't so very hard, but I felt it was very tricky. Good luck everyone.

    Reply
  59. uhy May 15, 2009 at 5:01 pm

    i like pretest but if i used ebook for usmle i prefer kaplan

    Reply
  60. uhy May 15, 2009 at 5:01 pm

    and i recommend to you too

    Reply
  61. Acct Guy May 15, 2009 at 8:53 pm

    Angel, did you pass?

    Reply
  62. ??? May 16, 2009 at 8:43 pm

    I took the pretest this morning, its now May 2009 revised. Similar to the previous one, but I didn't see that unearned airline revenue question on there anymore…

    Reply
  63. zaddy May 17, 2009 at 3:15 pm

    That's interesting 🙂

    Reply
  64. Name August 8, 2009 at 2:08 am

    god,,i have to take the pre test next sat, and it is the last exam 8/15….will they open another exam on 8/22…i signed up acct 301,307…if i fail i would hv no class to take..

    Reply
  65. B August 19, 2009 at 2:23 am

    Got a 18 on 8/1
    Got a 19 on 8/15

    F*** this test. Now I can't take the courses. They don't allow anyone who comes that close? Twice?

    Reply
  66. help January 12, 2010 at 1:12 am

    Has anyone found the correct answers to the May 2009 updated version of the pretest? I got a 19 on my first try.

    Questions but I don’t really remember the choices:

    Paying an Accounts Payable will: decrease liabilities, increase liabilities, decrease assets, …., none of the above

    Collecting an Accounts Receivable will: increase assets, decrease assets, decrease liabilities, ….., none of the above
    This will increase assets right?

    Reply
    1. Don May 25, 2012 at 1:18 am

      I don’t think so.  Accounts Receivable is an asset.  Once you collect that asset becomes more liquid.  It becomes cash.  You would credit A/R and Debit Cash.  The accounting equation remains the balanced as you are subtracting an asset (A/R) and adding an asset (cash).  I believe that it is none of the above.

      Reply
  67. help January 11, 2010 at 5:12 pm

    Has anyone found the correct answers to the May 2009 updated version of the pretest? I got a 19 on my first try.

    Questions but I don’t really remember the choices:

    Paying an Accounts Payable will: decrease liabilities, increase liabilities, decrease assets, …., none of the above

    Collecting an Accounts Receivable will: increase assets, decrease assets, decrease liabilities, ….., none of the above
    This will increase assets right?

    Reply
  68. bobby April 12, 2010 at 5:41 am

    So i did not pass the first time.. but failed at trying to remember the questions that are on the test

    can anyone post some example of what questions are on the new revised test?

    Reply
  69. bobby April 11, 2010 at 10:41 pm

    So i did not pass the first time.. but failed at trying to remember the questions that are on the test

    can anyone post some example of what questions are on the new revised test?

    Reply
  70. business ideas July 30, 2010 at 11:36 pm

    Paying on Accounts Payable will increase your liabilities.

    Accounts Payable is a liability account, so if you are buying something but do not pay with cash at that point, you are increasing your liabilities that have to be paid off in the future.

    Collecting on Accounts Receivable will not have any effect on your accounts. Keep in mind that according to the “Revenue recognition principle” you recognize revenue when services are performed.

    According to that, your Accounts Receivable is already an asset account. When you collect money, all you're doing is debiting Cash and crediting Accounts Receivable. There is no effect.

    I am registered to take the Accounting 301 Pretest on August 7. Hopefully it will not be too bad.

    Reply
  71. business ideas July 30, 2010 at 11:38 pm

    Bobby, I will try to remember and post the new questions once I have taken the test on August 7.

    Reply
  72. Summer 2010 August 1, 2010 at 5:47 pm

    If you pay off Accounts Payable, you are decreasing your liabilities. It will not decrease your assets because a liability account simply is the portion of business assets that creditors have a legal claim against. So when you credited “Accounts Payable” you already accounted for the decreased assets. When you pay it off, you are just reducing the liabilities.

    When you collect Cash from someone, you will credit Accounts Receivable. This has no effect on your assets or liabilities. Accounts Receivable is already an asset account. You accounted for the increase in assets when you performed the services (Revenue Recognition Principle) and debited Accounts Receivable. All you are doing by collecting on that account is debiting cash and crediting Accounts Receivable. The effect is none since both of them are asset accounts.

    Reply
    1. Don May 25, 2012 at 1:23 am

      Paying off Accounts receivable will decrease your liabilities, but i do believe that you decrease assets because you are paying cash to payoff the A/P.  When A/P is credited it usually means that you are debiting an expense of some sort.  This keeps with the accrual base accounting, or the matching principle. 

      Reply
  73. Summer 2010 test August 7, 2010 at 10:47 pm

    Who determines rules of GAAP?
    (FASB) was not one of the choices.

    A company receives $108,000 from 1000 customers at the rate of $36 per year for 3 year subscriptions in November. In December they publish their first magazine. On Dec 31, you would make the following entry…
    1) Record $3000 as revenue and record $105,000 as a liability.
    …. other choices with one being “none of the above.”

    This was the second question on the test and at first it made no sense.. but I had some time to go back and check over my answers.
    So the company receives $36,000 per year.. which should be divided into 12 months. This would come out to be $3,000 per month. (35,000/12). Since the company only published 1 magazine for the year, they would record $3,000 as revenue and the rest $105,000 as liability.

    Another question was asking to recognize the accounting cycle.
    One question was asking about the order in which financial statements are prepared. This also included “State of Cash Flows.”

    I felt the test was brutal. It was a little tricky and there were a lot of people who left after the first 30 minutes. I guess they figured they were not going to pass.

    By the time the test was done, there were only about 8 people left out of the 30+ we started out with.

    Almost 70% of the test is hardcore adjusting entries. The 301 pretest will test your knowledge of accounting thoroughly. People who think they will breeze by are going to be in for a surprise. You really need to understand the concepts.

    Reply
    1. Don May 25, 2012 at 1:31 am

      I think that AICPA (American Institute of Certified Public Accountants) determines the rules of GAAP.  

      Reply
  74. A.J. August 9, 2010 at 4:27 am

    So, how did it go?

    Reply
  75. GB August 10, 2010 at 4:00 am

    I put “SEC” for the answer to the question ” Who determines rules of GAAP? ”

    Reply
  76. business ideas August 10, 2010 at 4:21 am

    Same here. I believe the keyword to look for in that question was.. “SEC (exclusively)”

    They do not determine it exclusively, so the next best answer should have been that the rules are derived from acceptance from creditors, investors, government, etc.

    I am sure that one I got wrong because I erased it and went with “Securities and Exchange (exclusively)” answer although I felt it was the wrong choice.

    Looks like I am posting as “Singh” when I am not logged into this account, just to clear the confusion.

    Reply
  77. business ideas August 10, 2010 at 4:23 am

    There was another question that I remember.

    When you decrease assets on one side, on the other side you can..
    a) …
    b) …
    c) increase assets
    d) none of the above

    I went with “increase assets” as none of the other one made sense. You can decrease the asset account of “Accounts Receivable” and increase the asset account “Cash”

    I wonder how many people didn’t even think about that lol..

    Reply
    1. Benedd19 January 13, 2011 at 6:48 pm

      how about the question that says decrease asset

      Reply
  78. business ideas August 10, 2010 at 4:30 am

    Just remembered another question something along the lines of..

    If a company has accrued salaries of $205,000 for December but are not going to be paid until January of next year. The company will record this amount as an expense on Dec 31.

    This is an example of..
    a) …
    b) The revenue recognition principle
    c) The matching principle
    d) None of the above

    There was another question relating to the matching principle.

    I will post more if I can think of any.

    Reply
  79. Ben August 10, 2010 at 12:39 am

    i remember a question on what best describe liabilities…answers were
    a. decrease net income
    b. decrease assets
    c. obligations to creditors
    d. A and C
    e. B and C
    i went with C. obligation to creditors but was debating about answer E

    Reply
    1. business plan August 10, 2010 at 4:17 am

      Yeah, I also put Obligation to Creditors.

      Reply
    2. Don May 25, 2012 at 1:25 am

      I believe that C is correct.  A Liability could increase asset if it is an unearned revenue, but a liability id usually caused by an expense. 

      Reply
  80. Summer 2010 test August 10, 2010 at 12:43 am

    The score is in and I did pass with a good score after taking it the first time. I still believe that the test is WAY too tough for an average student.

    There were people who have been trying to pass it since last year but keep failing over and over. I just don't understand the purpose of having a test if someone has passed their financial accounting 1 course with a good grade.

    Not only does the test require you to have THOROUGH knowledge of accounting, the questions are worded really badly. At first sight they don't even make sense. Then you have some questions that could be considered “subjective.”

    I do not want to scare anyone with what I am saying. I just want people to be WELL PREPARED before going into taking this test.

    My advice is to drill down on adjusting entries as much as you can. Drill down on prepaid assets and unearned revenues, as you will have questions to adjust these in some extremely weird ways on the test.

    There was a question about dividends but as well — it said something like…
    A company DECLARES dividends on November 12. This is going to show up on.
    a) Income Statement
    b) State of owner's equity
    c) Balance sheet
    d) None of the above

    When you see that question, you must know that a company record dividends as a liability as soon as they are DECLARED. So you would have to debit Retained Earnings and credit Dividends Payable. This would show up on the Balance Sheet as a short-term liability.

    Good luck.

    Reply
  81. Cewcew444 August 10, 2010 at 8:21 am

    If a company has accrued salaries of $205,000 for December but are not going to be paid until January of next year. The company will record this amount as an expense on Dec 31.

    its that one b)?

    Reply
  82. Cewcew444 August 10, 2010 at 8:34 am

    there’s a true/false question relates to the matching principle….

    i remember a question’s answer but not the problem
    d) cash 12000 A/R 10000
    revenue 2000
    e) cash 12000 A/R 2000
    revenue 10000

    i scored a 15 on the third try…help me out guys!! im taking it again this sat

    Reply
  83. Cewcew444 August 10, 2010 at 8:58 am

    accrued revenue
    defered revenue
    accrued expense
    defered expense

    Reply
  84. Dee August 10, 2010 at 9:08 am

    Does anyone remember the question where it ask if the company will pay a notes payable of 6000 36000 or something like that?

    Reply
  85. business ideas August 10, 2010 at 4:22 pm

    The way they word the problems on the test is tricky. The questions I am posting are in my own words so everyone can understand easily.

    A company has $100,000 of supplies. They buy $80,000 of supplies in addition to that. The company does not keep records of supplies as they are used. At the end of the year, there is $75,000 balance left.

    The entry to record this at the end of the year would be..
    a) Debit “Supplies Expense” $105,000 and credit “Supplies $105,000

    To solve this problem, just make a T account. You have $100,000 + $80,000 with a total of $180,000 balance. If at the end of the year there is $75,000 left, that must mean the company should have used up $75,000 worth of supplies.

    Reply
  86. business ideas August 10, 2010 at 5:17 pm

    I picked “Matching Principle”

    You have to record the accrued expenses to match them against the revenues in the same period. Which is what the matching principle says.

    The Revenue Recognition Principle says that you recognize revenue when you perform services even if you do not receive the cash at that time.

    Reply
  87. business ideas August 10, 2010 at 5:25 pm

    I remember this one because this is one of the tricky ones.

    The exact scenario is hard for me to recall.. the answer was.

    Debit Cash 12,000
    Credit Interest Receivable 2,000
    Credit Interest Revenue 10,000

    The person had only recorded $2,000 in Interest Receivable at the end of the year, and then made no entry until the cash was received next year. So you HAVE to remove the $2,000 from Interest Receivable that was recorded at the end of last year. Then credit the rest $10,000 when you get the cash.

    Reply
  88. alcv August 10, 2010 at 6:48 pm

    congrats on passing singh! i’ve taken the test twice and failed both of them. im going to take it this saturday again. Thanks for sharing some of the q’s and a’s. I appreciate any help to pass this dreadful PRETEST…

    I remember a question on principles. I cant remember the exact wording. but the choices were
    – historical
    – materiality
    – full disclosure
    – …..
    – …..

    Reply
  89. Dee August 10, 2010 at 7:24 pm

    I think the worst thing for me is when i got my test all the answers were written in. I exchanged my booklet but it had me worried because looking at this other persons answer that were completely different from mine was real disheartening.
    Anyway the question I was referring to was where it said a company took out a notes payable of 360000 at 12 percent in nov 2011.
    And then it asked what if would pay back after a certain period of time and the answer were
    6000 to intrest payable and 6000 cash
    36000 to intrest payable and 36000 …..
    Anyone remember this.

    Reply
  90. Dee August 10, 2010 at 7:25 pm

    Were the test diffrent each time?

    Reply
  91. alcv August 10, 2010 at 7:29 pm

    @Dee

    i took the exam last year on August 15, 2009. and this past saturday on August 7, 2010. Both exams were the same. The cover said “last revised on may 2009”

    I still failed after having the same test -__-

    Reply
  92. business ideas August 10, 2010 at 8:17 pm

    Thanks alcv. One of my friends also took it for the first time on August 7 but did not pass the pretest by 1 point. He is going to take it again on August 14.

    I cannot recall that question.

    Reply
  93. DEE August 12, 2010 at 4:55 am

    there was a question about a company estimating a bill and what they what accounts they should credit and debit. I might have been tricked because I said that their was no accounts needed to be adjusted because I thought since they didn’t get the bill yet how exactly would they know from an estimate? Anyone know what I am talking about.

    Reply
  94. DEE August 12, 2010 at 4:55 am

    there was a question about a company estimating a bill and what they what accounts they should credit and debit. I might have been tricked because I said that their was no accounts needed to be adjusted because I thought since they didn’t get the bill yet how exactly would they know from an estimate? Anyone know what I am talking about.

    Reply
  95. Darryl August 13, 2010 at 1:44 am

    here’s a few questions i remember off the top of my head…for those who know the answers and are legitimate about it, please help the rest of us out…

    1) GAAP authority derives from
    -completely by SEC
    -institute of management accountant
    -…..accountants, creditors, investors, government, etc.
    -court proceedings

    2) What is the main purpose of adjusting entries
    -to assure asset and liabilities are equal
    -to recognize the true value of assets
    -to recognize the true value of liabilities
    -to assure revenues match expenses
    -to assure liabilities match expenses

    3) what is the accounting process
    -post to journal, ledger, trial balance, adjust
    -ledger, trial balance, adjust, close
    (both seems very reasonable, the other ones are incorrect)

    4) beginning balance of 100,000…purchase products of 80,000 throughout the year…paid 56,000 of the bills…75,000 was the ending balance….what do you record??
    -don’t remember the answers…does anyone know?

    5) according to FASB, what is the primary purpose of financial statements
    -for creditors and investors
    -for the IRS
    -for the IRS and SEC

    6) magazine subscription question…don’t really remember all the details but it was something like, customer paid for 1000 subscription for 2 yrs @ $36.00/ yr….what do you record
    -I went with none of the above…does anyone know the correct answer?

    7)sold something for 240,000…customer made a down payment of 100,000…what do you record?

    8) purchase an item worth 500,000…made a down payment of 100,000…what do you record?

    9) what best describe liabilities
    -decrease net income
    -decrease assets
    -obligations to creditors
    -A and C
    -B and C

    i took some of the questions posted and combined it with a few of my own questions. this test is beyond tricky and i wouldn’t be surprised if we all get an email stating there was a bunch of errors in the test. this is probably the hardest pretest at sfsu. i’ve taken the chemistry and the physics pretest and those were a breeze compared to this accounting pre-test. like previously stated, if anyone know the answers and are sure of it, please post it for the rest of us. it would be much appreciated

    Reply
  96. DoctorMontalban August 13, 2010 at 10:14 am

    #3 confused me, too, since the two answers you mention are in the right order, but are both incomplete. Because they were just a portion of the cycle I chose “none of the above.” I was leaning towards the first one (journal, ledger, tb, adjust) but changed it to “none” since it seems weird to just pick 4 things, though starting with the right 4 things and leaving off the tail end kind of seemed right. Argh…irritating.

    Reply
  97. sfsu student August 13, 2010 at 6:03 pm

    just curious, has anyone re-used their receipt instead of paying to re-take another pretest? The students literally just glanced at my receipt to see if i paid. If that is the only time they check for proof of payment then i was thinking of just trying the same receipt. After failing twice i do not want to spend another $20. The receipt only shows the amount paid and says “accounting 301 pretest.” There is no specified date, only the date i paid on shows.

    thanks

    Reply
  98. business plan August 14, 2010 at 2:05 am

    Hello Darryl. I did take the test and pass it the first time with a decent score, so I am going to assume that the answers I put down were correct. Let me try to give answers. If I am wrong, please point it out to me.

    1) GAAP authority derives from
    a. Accountants, creditors, investors, government, etc.

    On the test I went with “completely by SEC” but that is obviously not true. The next possible answer would be that the authority is derived from everyone including accounts, investors, government.

    2) What is the main purpose of adjusting entries?
    a. To assure revenues match expenses.

    Adjusting entries are necessary to match revenues against expenses in the same period to get a true picture of what is happening with your business. The matching principle.

    3) What is the accounting process?
    a. None of the above

    The reason I personally wrote down none of the above is because the accounting process involves posting to Journal, Ledger, Trial Balance, Adjusting, Financial Statements, Closing.

    None of the answers actually had it in that format, so I picked “none of the above.” Please choose this at your own discretion.

    4) There is $100,000 in a Supplies account. The company purchases additional $80,000 Supplies. The balance at the end of the year is 75,000. The company does not keep a running record of when supplies are used. What do you record?
    a. Debit 105,000 Supplies expense
    Credit 105,000 Supplies

    I do believe this is what you are talking about. It was the first question on the second page.

    5) According to FASB, what is the primary purpose of financial statements?
    a. To inform creditors, investors and others to be able to make good decisions

    This should be easy. The periodicity concept states that a company has to prepare financial statements at least once a year to provide information on assets, liabilities and other things that are useful to everyone.

    6) A company receives $108,000 in November from 1000 customers for 3 years, at the rate of $36/year for magazine subscriptions. The company prints its first issue in December. At the end of the year what would you record?
    a. Record $3000 as revenue and $105,000 as liabilities.

    This is the second question on the test. At first, its confusing as hell because it is worded in such a stupid way. So a company has 1000 customers at $36 per customer for 3 years. So you actually received $36,000 per year for 3 years. (1000 customers multiplied by $36 per year) (3 years). Your total is $108,000. So if the company gets $36,000 per year, you now have to figure out how much the printed issue in December cost. You just divide $36,000 by 12 and get $3000.

    7)sold something for 240,000…customer made a down payment of 100,000…what do you record?

    I can’t think of this problem.

    8) purchase an item worth 500,000…made a down payment of 100,000…what do you record?
    I can’t think of this problem.

    9) What best describes liabilities?
    a. Obligations to Creditors

    That’s all it is, obligation to creditors. Liabilities do not affect net income. Liabilities do not necessarily decrease assets, but they are definitely obligations to creditors.

    For example: When a company declares dividends, they debit Retained Earnings and credit Dividends Payables. When they pay the dividends with stock, they reduce Dividends Payable and credit Common Stock. In this case, Common Stock is not an asset account but Stockholders’ equity. So liabilities do not always reduce assets, which is what the question is asking.

    Hope my explanations helped slightly.

    Reply
  99. JenniferC August 14, 2010 at 8:11 pm

    I took the test today, don’t know if i passed but I remember these questions and being doubtful if i had the correct answer:

    1. Paying a utility bill could:
    a. increase expenses
    b. increase assets
    c. increase liabilities
    d. (forgot)

    I picked a. increase expense. Example: Debit Utilities Expense, Credit Utilities Payable

    2. According to FASB the main purpose of providing financial reports is to:
    a. Record company’s profits for the year
    b. Help make lending and investing decisions
    c. Provide information to SEC
    d. Provide information to IRS
    e. C and D

    I picked A, now looking back, the answer should be B

    3. Workers did work in 2011 but paid in 2012. THe following adjusting entry is recorded at the ended of 2011: Wages expense XXX
    Wages payable XXX
    Which principle was applied?
    a. cash accounting principle
    b. matching principel
    c. historical cost principle
    d. revenue recognition principle.

    I picked B. Now looking back, maybe the answer could’ve been A or D

    4. Declared cash dividends in 2011 but not paid until 2012.
    Do you:
    a. Record dividend expense for 2011
    b. Record dividend expense for 2012
    c. Record dividend payable for 2012 on the balance sheet
    d. A and C but not B
    E. None of the above.

    What were your guys’ answer to these?

    Reply
  100. alcv August 14, 2010 at 8:27 pm

    alright, so I took my 3rd attempt today. I felt like i did better. Here are some of the questions i was able to remember.

    Now if we combine all the questions and answers on this blog everyone should be able to pass. SFSU is making this so much harder for us to get classes and they keep raising “tuition.” I just want to help everyone out and make life a little easier.

    1. Paying a utility bill could
    a. no effect on assets
    b. increase total assets
    c. increase total expense
    d. increase liabilities
    e. none of the above

    2. Which is not the correct form for Adjusting Entries
    a. Debit expense and credit revenue
    b. debit assets and credit revenue
    c. credit liability and debit expense
    d. debit expense and credit assets
    e. none of the above

    3. Accrued liability is best describes as amount..
    a. paid and undisclosed on balance sheet
    b. paid and matched with revenue
    c. unpaid and disclosed on balance sheet
    d. unpaid and disclosed on income statement
    e. none of the above

    4. An adjusting entry contains a debit to an asset account and a credit to a revenue account. This is an example of..
    a. accrued expense
    b. accrued revenue
    c. deferred expense
    d. deferred revenue
    e. none of the above

    5. A trial balance…
    a. normally only prepared after closing entries and events
    b. is a chronological record of account transactions
    c. is a listing of temporary accounts and their balances
    d. proves that the account balance are correct if it balance
    e. none of the above

    6. December 20, 2011 declared dividends to pay in 2012. which is correct, if any?
    a. record dividend expense for 2011
    b. record dividend expense in 2012 when paid
    c. record a dividend payable in 2011 balance sheet
    d. a and c but not b
    e. none of the above

    7. If one part of the journal decreases liability, the other part of the journal…
    a. increase revenue
    b. decrease revenue
    c. increase expense
    d. none
    e. a and c, not b.

    8. Which statement is true (i only remembered one answer, which is the one i chose)
    – Debits increase assets and expenses

    9. If assets increase by $80,000 and liabilities decrease by $16,000
    a. effect on Owners’ equity cannot be determined
    b. increase must have been $64,000
    c. increase must have been $96,000
    d. Owners’ equity must have increased by $96,000
    e. none of the above

    10. Dec 2011 milby company sells merchandise to another company for $240,000. A down payment of $100,000 was made and the rest will be paid in 2012. Which is correct?
    a. record revenue of $100,000 and unearned revenue $140,000 for 2011
    b. record revenue of $240,000 in 2011
    c. record no revenue for 2011
    d. record accounts receivable of $240,000 in 2011
    e. none of the above

    11. Which of the following was false (i only remember two of the answers and the wording is really off. if you guys remember the others please put em on here).
    c. the adjusting journals may contain assets, liabilities, expenses, revenues.
    e. something about closing income summary and having the balances at 0.

    Reply
  101. business plan August 15, 2010 at 5:07 am

    The first one seems correct.

    2) Yes, the answer should have been B

    3) This is the matching principle. You matched the expenses you incurred to the revenues you received in the same period.

    4) When dividends are DECLARED, a company would debit Retained Earnings and credit Dividends Payable.
    Answer should have been C. They show up as a liability on the balance sheet.

    Reply
  102. business plan August 15, 2010 at 5:38 am

    1. Paying a utility bill could
    a. no effect on assets
    b. increase total assets
    c. increase total expense
    d. increase liabilities
    e. none of the above

    This question does not tell you if you are paying off utilities payable or paying straight with cash. I assume you will be paying off Utilities Payables liabilities. In that case, paying a utility bill would increase your expenses.

    2. Which is not the correct form for Adjusting Entries
    a. Debit expense and credit revenue
    b. debit assets and credit revenue
    c. credit liability and debit expense
    d. debit expense and credit assets
    e. none of the above

    You do not debit expenses and credit revenue. You could debit expenses and credit liabilities (accounts payable). You could also debit expenses and credit assets, if you pay with cash. You can definitely debit assets and credit revenue in the form of Cash and Service Revenue if you receive the money as you perform the services. So the answer is A.

    3. Accrued liability is best describes as amount..
    a. paid and undisclosed on balance sheet
    b. paid and matched with revenue
    c. unpaid and disclosed on balance sheet
    d. unpaid and disclosed on income statement
    e. none of the above

    An accrued liability would be unpaid and show up on the balance sheet as a short term payable.

    4. An adjusting entry contains a debit to an asset account and a credit to a revenue account. This is an example of..
    a. accrued expense
    b. accrued revenue
    c. deferred expense
    d. deferred revenue
    e. none of the above

    Accrued Revenue is the correct answer. You debit Accounts Receivable and credit Service Revenue.

    5. A trial balance…
    a. normally only prepared after closing entries and events
    b. is a chronological record of account transactions
    c. is a listing of temporary accounts and their balances
    d. proves that the account balance are correct if it balance
    e. none of the above
    None of the answers seem to be correct. It’s a listing of accounts and their balances, but not all the accounts are temporary. So it is not C. The answer should have been E, none of the above.

    6. December 20, 2011 declared dividends to pay in 2012. which is correct, if any?
    a. record dividend expense for 2011
    b. record dividend expense in 2012 when paid
    c. record a dividend payable in 2011 balance sheet
    d. a and c but not b
    e. none of the above

    The answer is C. Record dividends payable as a short term liability on the Balance Sheet.

    7. If one part of the journal decreases liability, the other part of the journal…
    a. increase revenue
    b. decrease revenue
    c. increase expense
    d. none
    e. a and c, not b.

    If you are decreasing liabilities, you are most likely increasing expense. For example: if you pay off Utilities Payable, you would debit Utilities Expense and credit Utilities Payable.

    That successfully decreases liability and increases expense. So the answer should have been C.

    8. Which statement is true (i only remembered one answer, which is the one i chose)
    – Debits increase assets and expenses

    Me too.

    9. If assets increase by $80,000 and liabilities decrease by $16,000
    a. effect on Owners’ equity cannot be determined
    b. increase must have been $64,000
    c. increase must have been $96,000
    d. Owners’ equity must have increased by $96,000
    e. none of the above

    I chose A, effect on Owner’s equity cannot be determined. I just could not figure out a way to see how you would be able to determine that. Not sure about this. It could have also been “none of the above.”

    10. Dec 2011 milby company sells merchandise to another company for $240,000. A down payment of $100,000 was made and the rest will be paid in 2012. Which is correct?
    a. record revenue of $100,000 and unearned revenue $140,000 for 2011
    b. record revenue of $240,000 in 2011
    c. record no revenue for 2011
    d. record accounts receivable of $240,000 in 2011
    e. none of the above

    You record revenue of $240,000 in 2011. Revenue recognition principle. Regardless of if you have received all the money yet or not, you still recognize the whole amount as revenue.

    11. Which of the following was false (i only remember two of the answers and the wording is really off. if you guys remember the others please put em on here).
    c. the adjusting journals may contain assets, liabilities, expenses, revenues.
    e. something about closing income summary and having the balances at 0.

    Cannot recall this question.

    All in all, anyone that wants to pass the 301 pretest the first time should read the comments. There is no way you can fail now that you have all the answers.

    Thanks to everyone who posted questions and gave answers.

    Good luck and see you on campus!

    Reply
  103. JenniferC August 16, 2010 at 1:32 am

    I also was unsure about this question:

    GAAP derives its authority from :
    a. completely from SEC
    b. the profession of managerial accounting
    c. the accounting process, creditors, investors, government
    d. court proceedings
    e. none of the above.

    I would’ve gone with C but I put A for some reason. What did you guys put for this?

    Reply
  104. JenniferC August 16, 2010 at 2:04 am

    Actually #9 was If assets increase by $80,000 and liabilities decrease by $16,000
    a. effect on Owner’s equity cannot be determined
    b. net income was 64,000
    c. net income was 96,000
    d. owner’s equity must have increased $96,000
    e. none of the above

    I put D and I’ll explain why I chose that answer:

    Assets= Liabilities + Owner’s Equity
    For example 100 = 50 +50
    I put 96 of my own cash into the company. 196= 50 + 146
    I pay off Wages Payable by 16, thus, decreasing liabilities and assets by 16. 180=34 +146

    So in the end, Assets have increased by 80, and liabilities have decreased by 16. Owner’s Equity has increased by 96.

    What do you guys’ think?

    Reply
  105. JenniferC August 16, 2010 at 2:22 am

    For #3, I put journal, ledger, trial balance, adjusting because the question wasn’t asking for the complete accounting process. All the answers only have four parts of the accounting process. This really was a trick question though, I wouldn’t be surprised if a lot of people got this question wrong.

    Reply
  106. skyblue August 16, 2010 at 5:33 pm

    i got one:
    Paying an account receivable could:
    a.increase asset
    b.decrease liability
    c.increase expense
    e.none of above

    Reply
  107. business plan August 17, 2010 at 12:23 am

    You had really good reasoning, but I have a few concerns about it still.

    There is no rule that says that liabilities and owner’s equity must be split in 50-50 to equal the assets of 100%.

    For example, we have no idea if assets are 100 = 50 + 50. It could be 100 = 30 + 70. It still keeps the equation in balance. In that case, your numbers would be completely off.

    That is the reason I am not sure the effect on owner’s equity can be determined.

    The question just mentioned that assets were increased by $80,000. We don’t know how they were increased. We could have performed services for that much in that period.

    As such, assets can increase without owner actually putting in additional investments. That is the reason I still believe that the effect on owner’s equity is hard to determine.

    Too bad they don’t tell us which questions we got wrong so we can accurately determine.

    Good thinking though Jennifer!

    Reply
  108. business plan August 17, 2010 at 12:31 am

    None of the above.

    Accounts receivable is an asset account. When you get the cash, you’re just moving it from one asset account to another. The result is nothing.

    Reply
  109. darryl August 17, 2010 at 1:40 am

    thanks for the insight..it really helped me on the test..

    Reply
  110. darryl August 17, 2010 at 1:46 am

    Hey JenniferC, I took the test this last Saturday and passed it with a score of 25 so my answer are most likely reliable..
    1. Paying a utility bill could:
    a. increase expenses
    2. According to FASB the main purpose of providing financial reports is to:
    b. Help make lending and investing decisions
    3. Workers did work in 2011 but paid in 2012. THe following adjusting entry is recorded at the ended of 2011: Wages expense XXX
    Wages payable XXX
    Which principle was applied?
    b. matching principle
    4. Declared cash dividends in 2011 but not paid until 2012.
    c. Record dividend payable for 2011 on the balance sheet
    if someone has a different answer please reply to this post to assure that Jennifer gets the correct answer.

    Reply
  111. darryl August 17, 2010 at 1:53 am

    The answer is actually C.. The word COMPLETELY should’ve automatically be eliminated.

    Reply
  112. darryl August 17, 2010 at 1:54 am

    The answer is E.

    Reply
  113. alcv August 17, 2010 at 2:56 am

    Thanks Singh, Darryl, Jennifer, and everyone else for your help. I failed by 1…. I believe i have one more chance to take the pretest. With all of your help i should now be able to pass.

    Reply
  114. skyblue August 17, 2010 at 5:10 am

    number 7 and number 8 is the hard one in the test….and they’re the longest words problems too

    Reply
  115. JenniferC August 17, 2010 at 5:46 am

    Thank you businessplan and Ben. I checked my test report today and I passed with a 22. Phew!

    Reply
  116. DoctorMontalban August 17, 2010 at 9:34 am

    I’m with you. Even if it was 100 = 30 + 70, an increase of 80k in assets on one side, and a decrease of 16k in liabilities on the other, it would have a +96k effect on O.E., per the accounting equation.

    Reply
  117. business plan August 18, 2010 at 2:23 am

    Anyone taking 301 with J OSHAUGHNESSY MW 2:10PM this semester (Fall 10)?

    Reply
  118. business plan August 19, 2010 at 12:32 am

    This problem is tricky. Let me take another shot at it.

    It looks like It would have an effect on the Owner’s Equity for the given amount, but the choice in the answer is “Owner’s equity is INCREASED by $96,000” which is not the case.

    We know only 4 things effect OE – Investments, Revenue, Expenses and Withdrawals.
    When they recorded the liability, they increased the expenses. This would have DECREASED Owner’s Equity.

    So, when the company gets $80,000 through whatever (Service revenue or Investment), Owner’s Equity is changed (increased) by $80,000.

    When we pay the $16,000 in Liabilities, we debit the Liability and credit Cash.. which has no effect on Owner’s Equity. The expense that was recorded when the liability was credited, it would have lowered Owner’s Equity at that point in time. Even keeping that in mind, Owner’s Equity would have been –increased– by $96,000 as per one of the answers.

    So while the Owner’s Equity was effected by $96,000.. it was not increased by that amount. It was increased by $64,000 ($80,000 – 16000)

    This COULD mean the answer was (B) Net income increased by $64,000 if no other transactions in that period took place. But it is safe to assume that realistically that won’t be the case.

    In the end, you can only say that we have no idea how owner’s equity is effected.

    Please fix my reasoning if I am wrong.

    Reply
  119. DoctorMontalban August 19, 2010 at 7:45 am

    It could also be a $96k investment to the business, which would increase O.E. by 96k and assets (cash) by the same amount; with a $16k decrease of liabilities and a reduction in cash (bringing the increase to 80k), keeping the accounting equation in tact.

    Reply
  120. business plan August 20, 2010 at 12:27 am

    What you said makes sense as well.

    This question is especially tricky because it can be interpreted in different ways.

    Here is another way of looking at the problem — lol

    Company gets $80,000 in Cash through either investment or Revenue. The result is that Owner’s Equity is increased by $80,000. Then we pay the liability, we debit it and credit cash. There is no effect on owner’s equity in the end. So the only thing that happened (from the given information) was that Owner’s Equity increased by $80,000.

    In this case, the answer would be “None of the above.”

    Reply
    1. cyfrene January 13, 2011 at 10:08 am

      I believe it should be income must have been 96k. I say this because assets increased by 80k. Liabilities paid off by 16k. If income was 96k, assets and OE would be 96k. Matching principle. Then the company pays off some liabilities with cash 16k. Debit payable 16k and credit cash 16k. It’s still the matching principle. Is this not correct?

      Reply
  121. DoctorMontalban August 20, 2010 at 11:23 pm

    In your example the net change to assets would be $64k, which isn’t what the question presented. Per the question, the net increase in assets has to be $80k, not $64k.

    The liability sits on the balance sheet as a claim against those assets, so for a +80 net change in assets to occur, assets had to be $96k prior to the claim. That $96k would’ve come from revenue or investment, as you mention, keeping the: $80k (A) = -16k (L) + 96k (O.E.) equation in tact (which it always must be).

    Reply
  122. :D Jen August 28, 2010 at 9:02 am

    wish me good luck tomorrow everyone! I wish with everything I have in my life that I will pass the test tomorrow!! 😀

    Reply
  123. guest November 13, 2010 at 8:36 pm

    1. Paying account payable would:
    a)decrease liability
    b)increase asset
    c)decrease expense
    d)decrease equity
    e)none of the above
    I choose A. decrease liability. Not sure.

    2. If one part of the journal (decrease/increase) asset, the other part of the journal…(forgot about the problem asks if decrease or increase asset).
    a)increase liability
    b)decrease expense
    c)increase asset
    d)…
    e)none of the above

    3. If one part of the journal decreases liability, the other part of the journal…
    a. increase revenue
    b. decrease revenue
    c. increase expense
    d. none
    e. a and c, not b.
    I don’t understand why you guys choose answer C – increase expense.

    5. A trial balance…
    a. normally only prepared after closing entries and events
    b. is a chronological record of account transactions
    c. is a listing of temporary accounts and their balances
    d. proves that the account balance are correct if it balance
    e. none of the above
    I don’t understand why it’s not the answer D.

    Reply
  124. Dylan December 5, 2010 at 7:57 am

    In December, 2011 Company agreed to install contract price of $ 500,000 and received down payment $100,000 service revenue, Company completely finished first installation on December. Will paid in January 2012, on 12/31/2011;Company should make the following Entry

    a. Unearned Service revenue 400,000
    Service Revenue 4000,0000

    b. Service Revenue 100000
    Unearned Service Revenue 100000
    c.Cash 400000
    Service Revenue 400000
    d. Account Receivable 400000
    Service Revenue 400000
    e. none of the above

    Which of the following, if any, is false?
    a.expense may be recorded before any cash is paid for purchase
    b. revenue may be recognized before any cash is received by company
    c. Adjusting entry must involve asset, liabilities, revenue and expense
    d.the matching principle says that total asset= total liabilities and owners’ equity
    e. Closing entries are used at end of an accounting period to bring income statement to zero.

    Reply
    1. Mary December 8, 2010 at 9:16 pm

      The answer to your first question is A and the second question is D. The Matching Principle records transactions as they occur,rather than when cash changes , in this way revenue and expenses match.

      I am not sure of the answers to both of the questions below. I memorize them…Does any one know the answer to:

      If one part of the journal decreases assets, then the other part of the journal entry could…

      a) increase assets
      b) increase Revenue
      c)increase liabilities
      d) decrease expenses
      e) none of the above

      If one part of the journal entry increases liabilities then the other part of the journal entry could…

      a) increase revenue
      b) decrease revenue
      c) increase expenses
      d) none of the above

      Reply
      1. Gayasfuck July 30, 2012 at 4:49 pm

        Can you explain why the answer to the first question is A and not D?

        Reply
    2. gest January 21, 2011 at 10:40 am

      first question the answer is d, because even if they finished there work they still did not get paid tell next year,so it is accrued revenue and that is accounts receivable

      Reply
  125. Help December 9, 2010 at 12:59 am

    colletting an account receviable would:
    a.increasing revenue
    b.increasing asset
    c.decrease asset
    d.decrease lability
    e.none of the above

    paying an account payable would:
    a.increasing expense
    b.decrease asset
    c.
    d.
    e.none of the above

    Reply
  126. gest January 15, 2011 at 1:39 am

    dividends can be seen or reported in which financial statment: trial balance, income statement, reteined earning statement, non of the above

    Reply
    1. Josh August 4, 2012 at 8:33 pm

      Dividends appear on the statement of retained earnings. Good luck everyone on the pre-test!

      Reply
  127. Mayyash January 15, 2011 at 1:43 am

    expenses that is not yet billed for the year end and will be billed the next coming year do we recorded, for example a company is astemating 10000 in expenses for year 2011 but will be billed in 2012 and payed also in 2012, so in the end of year 2011 do we need any adjusted entry

    Reply
  128. Taylor April 14, 2011 at 1:26 pm

    I passed the pretest by studying off these blog comments. Because I cheated, now I’m failing my acct 301 class.

    Suggestion: Try to actually study for the pretest. It really helps prepare you for the class.

    Reply
  129. Jamesguan31 December 15, 2011 at 3:49 pm

    Did they revised the pretest? Any Updates regarding the test?

    Reply
    1. Mightymisfits January 12, 2012 at 12:09 pm

      im takin the test tomorrow so ill let u kno

      Reply
      1. guest April 28, 2012 at 1:25 pm

        i took it today, the test still the same

        Reply
      2. guest May 23, 2012 at 3:26 pm

        so was it the same?

        Reply
    2. Mary January 18, 2012 at 11:50 am

      I took it last Friday and it has not been revised.

      Reply
    3. guest April 28, 2012 at 1:27 pm

      took it today, still the same (4/28)

      Reply
  130. Jamesguan331 January 14, 2012 at 11:22 pm

    @b918cd0e3eb0d18adf1b0c2a97ede893:disqus, did they revised the pretest? Do you remember the questions/answers?

    Reply
  131. WARRIOR January 17, 2012 at 4:06 pm

    Sup guys, just took the test last week.  Got my grade back today and I passed with a really good grade.

    Seriously just look at the questions on this blog and you will pass no doubt, but I suggest you watch a couple professors on youtube on accounting basics.  I’m assuming acct 301 will require you to know the basics. 

    Like it was literally the questions seen on this blog.  Thanks for all the help and I will help whoever needs help as well.

    Reply
  132. JefferyLi123 January 17, 2012 at 6:51 pm

    The test has been revised. I took it on 1/13/12. I passed on my first try with a score of 22. I mainly studied chapters two and three of my financial accounting book. Good Luck to everybody planning to take it.

    Reply
    1. melis January 19, 2012 at 5:49 pm

      I am taking the test this Saturday.. what is the test mainly about?? can you please give us examples of questions that are on the test…Thanks

      Reply
      1. W Lau05 January 20, 2012 at 7:09 pm

        Good luck tomorrow, I have the test at 10AM also, I’ve been studying non stop and I found this blog. The person who said to studying the first 3 chapters of financial accounting book is probably right because all the questions everybody has been discussing in this blog, seems revolve around those 3 chapters (well my book is more like chapter 2,3,4).

        Reply
  133. Guest1 April 30, 2012 at 6:18 pm

    Took the test on the 28th, still the May 2009 version. Using the info from other 2009 test takers here I managed to pass the first time. Thanks for your help everyone, and anyone needing help passing would do well to study the 2009 questions and the first few chapters of their accounting books.

    Reply
  134. Guest May 26, 2012 at 7:00 pm

    Just took the test on the 25th, it was last revised in 2009. Failed the stupid test by 2! 

    Reply
  135. Liky0424 June 24, 2012 at 12:33 pm

    I should search on-line ask for help before I prepare my first test~~I never know there is good help in this website.~~On JUN 30TH 2012 .. I got 18 out of 30 at my first time. after finished, I change 3 answers during the exam. But I found out that the answer I choose at frist time are right ~I souldn’t change my answers~~ make me so crazy,,,I should believe my first sense if I unsure the answers~~~ Hope I can pass acct 301 pretest in my second chance..so worried ~~~Hey guys don’t believe what the State Website said to only review 1 to 3 chapter..these 3 chapters are not enough, if you have time, you have better to review some that you think key homework questions of each chapter. It will help you a lot. The questions are so tricked. You have to think carefully and understand well what the questions ask for.

    Reply
  136. Tao July 14, 2012 at 12:33 am

    Hi, Tao, I going to take the test on august 4th, any advice? study the first 3 chapters of what kind of accounting book?

    Reply
  137. souking August 15, 2012 at 1:22 pm

    hey i am taking the test this saturday 8/18/2012 are there any changes from what people have been posting on the site? i just grabbed the recent version of financial account 100 for this semester to study from and i am going over chaps 1-5, im using the study guide list thats off of the sfsu pre-test site is that really accurate?

    Reply
    1. Alex Chang August 18, 2012 at 2:19 am

      no not really. I took this test two weeks ago and failed it with a score of 18. Makes all the A’s I’ve gotten in accounting (including Intro to Financial accounting) look worthless. I’ll be retaking it tomorrow (8/18) as well. CYA there!

      Reply
  138. Alex Chang August 18, 2012 at 1:19 am

    Damn! Reading this thing I’m glad to know that it wasn’t just me! I took the test too and while I found a few questions rather tricky (are we assuming cash basis or accrual basis?), overall I thought I did rather well. Turns out I got a crappy 18 on the test and will be retaking it tomorrow 🙁

    Reply
  139. Jay August 18, 2012 at 5:16 pm

    Just took the test today, still using 2009 version.

    Reply
  140. Rayson August 29, 2012 at 8:38 pm

    For SFSU students, if I fail the test 2 times, then can’t I just change my major to Finance? lol I’m a first time freshmen whose trying to change my major to accounting. Is it better for me to take the test this year or around next year?

    Reply
    1. mandy ma August 31, 2012 at 1:07 pm

      take the test after you finish acct 100. because all the question are about financial accounting, nth about managerial acct.

      Reply
  141. Eva June 20, 2013 at 9:20 am

    Has anyone taken the accounting test recently in the year 2012/2013? Was the test changed?

    Reply
  142. Hanna August 10, 2013 at 8:27 pm

    the test was last revised january 2013 -___- just took the test earlier.

    Reply
    1. Jane August 13, 2013 at 2:30 am

      omg.. how was it?

      Reply
      1. Hanna August 20, 2013 at 11:21 am

        I passed! I got a 21 so I just barely passed lol. the test is super tricky for me though -__- with a lot of the questions, 2 or 3 of the answers seem right to me so I had to guess a lot 😛

        Reply
    2. Jane August 13, 2013 at 5:25 pm

      omg how was it?

      Reply
      1. Hanna August 20, 2013 at 11:19 am

        it was really tricky 🙁 i dont really remember the questions but I know that there was one question about treasury stocks so study up on the definitions of that. like if its not outstanding but still issued or if its a federal bond or something like that. theres also one about when dividends become liabilities: when you declare them, when you record them, when you pay them, none of the above. I think it was something like that. I put when you declare them but im not so sure

        Reply
        1. Jane August 20, 2013 at 5:26 pm

          Congrats for passing! I’m taking the test this Saturday and I am so nervous! I really don’t know what to study for. Was there a lot of adjusting entries? Were the calculations confusing? Thanks for your input! 🙂

          Reply
        2. Emma August 20, 2013 at 8:02 pm

          I agree it was really tricky!! I failed the damn test by 2 points 🙁 But I’m retaking it this Saturday. Do you remember your answer to the question “What best describe accrued expenses or something like that?” I went with “recognition of liabilities and expenses” but I’m pretty sure I got it wrong. I think it’s none of the above. I just hate how they worded some of the problems. Congrats on passing though!

          Reply
  143. Green August 13, 2013 at 3:12 am

    Took the test recently, revised January 2013 D:
    I only recall about two of the questions
    Correct me if I’m wrong 🙂
    One which is similar to the previous questions concerning GAAP, which was who they derive their authority from. The answer was the one with courts, government and so forth.
    There was another question about GAAP regarding how they started or are accepted by
    a. SEC
    b. CAP
    c. APB
    d. FASB
    e. all of the above
    I believe the answer should be all of the above.

    They also added straight line depreciation to the newer version, so make sure you study that.
    There was one question about purchasing a item for $40,000 and having a residual value of $4,000. The life expectancy is 5 years. What would the depreciation value be in 1 year?

    Two years?

    If after three years, the company sells it for $24,000, would the company have a gain or loss?
    A. gain 800?
    b. gain 1600?
    c. loss 800
    d. loss 1600
    e. ????

    Reply
    1. Jane August 14, 2013 at 8:07 pm

      Thanks for sharing! Did you do a lot of calculations? Was the test confusing?

      Reply
      1. Green August 22, 2013 at 12:06 am

        Np. Unfortunately, I must retake it myself…. There were a few calculations and some of the questions were indeed confusing. Read carefully and check all of the answers before you choose one.

        Know how to adjust entries

        Some other questions I recall….

        If your trial balances debit = credit, that means…..?
        a. it is balanced
        b. there’s nothing wrong with it
        e. none of the above
        Not sure if this should have been a or e

        Treasury stock?

        Net income appears on what financial statements? (forgot the choices =( except of the above)
        e. none of the above

        Reply
  144. guest August 19, 2013 at 1:52 pm

    I took the test last month and I would recommend studying more then just chapter 3 and 2. There were several questions on straight line deprecation so definitely know what it is and how to calculate it. Questions about treasury stock, cash flows, dividends, trial balance, and retained earnings. I can’t remember the rest, but if you took financial accounting recently you’ll be fine, if not I would brush up on as much as possible cause it was harder then I thought it would be.

    Reply
  145. GUEST August 25, 2013 at 12:32 am

    Just took the acct 301 test yesterday and I say study, study, study! You have to really understand the concepts of entries, adjusting entries, and closing entries because the problems are very tricky! What I can remember from the test are questions based on:

    entries
    adjusting entries
    closing entries
    treasury stock
    GAAP
    straight-line depreciation
    dividends

    That’s all for now! I’ll post more if I can remember lol

    Reply
  146. Anon227 August 26, 2013 at 6:12 pm

    I’m a finance major and was hoping to take accounting classes as my electives. Let me say this, the acct 301 pretest is extremely tricky. I have all A’s in accounting and studied for at least 40 hours the week prior to taking this test. I followed the study guide they posted on the testing center website, I read the first few chapters of an intermediate accounting textbook as well as ran through all the practice problems from my financial accounting textbook, cover to cover. I finished the test early, double checked my work, and left feeling good about it having only guessed on maybe 2 or 3 questions. I failed with a 57% score (17 out of 30).

    Here is the updated study guide for others taking this pretest:
    http://www.sfsu.edu/~testing/301_Pretest_study_guide_updated_Spring_2013.pdf

    Reply
    1. Zahid August 26, 2013 at 6:58 pm

      Thanks for sharing the link, I have been out of touch and lately this post has see quite a bit of activity. I have updated the post with the link you posted. I sure don’t miss 2007. Phew…

      Reply
  147. Bahodurhon Madjidov August 30, 2013 at 3:42 am

    People everywhere scared me to death, saying that it is really difficult and only 50% of people pass.. I just took the test last week for the first time, studied for about three days prior to the test and I’ve taken financial accounting years ago so I was worried.

    Anyways, I walked in really nervous, not knowing what to expect, however, once I got the test it looked so easy… for the most part. None of the questions that was posted in here were on the exam because it has been updated this year I think. I’ve finished in less than an hour I think, and this week got my results: 27/30.

    I struggled with one or two question:

    One of them was like who helped create GAAP or something similar and the choices were:
    FASB
    CAP
    APB

    All of the above.

    Another was something asking about increasing bonds? Not sure.

    Other than that it was pretty straight forward: Adjusting entries, straightline depreciation, debits and credits etc. I just studied the material provided by the test center and read first 3 chapters of an intermediate accounting book.

    So my point is if you study enough, its not that difficult.

    Reply
    1. Bahodurhon Madjidov October 9, 2013 at 9:07 pm

      Edit: When i said none of the question i meant the questions posted and answered over a year ago. The people who posted after 2013 have the right examples…

      Reply
  148. Jane August 31, 2013 at 12:42 am

    Took the test on Aug. 24 and passed! For those of you that did not, I suggest you still register for ACCT 301 because my professor let this one student who got a 20 (after passing his oral exam during office hours) stay in our class. I’ve also heard from others that Hsieh is forgiving and kept people in his class even if they failed the pretest.

    Things to study on:
    -GAAP
    -What is treasury stock – something along the lines of issued but not outstanding
    -Straight-line depreciation (3-4 problems)
    -Adjusting entries – remember YOU DONT ADJUST CASH! So if they’re asking for an adjusting entry (they clearly state it on the problem), cross out the choices that has CASH.
    -Know how to reverse entries so you know what to adjust. One problem went something like (NOT the real numbers cos i forgot them already): Company has $35,000 supplies. Company bought more supplies worth $150,000 and recorded it under Supplies Expense. At the end of the period, the company has $45,000 left. What is the adjusting entry?
    -When do you credit retained earnings
    -Dividends become a liability when you ________ them.
    -What happens when you pay a utility bill

    The test was indeed very tricky. Read the problems carefully. You have 90 minutes for the test!!

    Reply

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